UPS Boosts High-Yield Dividend to $1.64 And Paid Investors Today

By Joel South Published Mar 6, 11:52AM EST

Key Points

UPS delivers another reliable dividend payment with a 5.5% yield.
The company has maintained or increased its dividend for 26 straight years.

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UPS Boosts High-Yield Dividend to $1.64 And Paid Investors Today — © Teerachai Jampanak / Shutterstock.com

United Parcel Service (NYSE:UPS | UPS Price Prediction) is a dividend-paying powerhouse, and paid a quarterly dividend of $1.64 per share to shareholders today, March 6. Anyone owning shares as of February 18, 2025, will pocket this market beating 5.5% yield payment. This payout continues UPS’s 26-year streak of maintaining or boosting its dividend since going public in 1999, making it a stable pick for income investors.

Just Shy of Dividend Aristocrat

UPS isn’t an official Dividend Aristocrat—reserved for S&P 500 firms with 25+ years of consecutive increases—but it’s knocking on the door with 26 years of steady or rising payouts since 1999.

The current $1.64 quarterly dividend annualizes to $6.56, yielding about 5.5% based on a recent $120 stock price. Since 2014, the dividend has climbed roughly 140%, paired with a 22% increase in share price. While the total stock return has significantly underperformed the S&P 500 (223% vs. 18% over the last 10 years), dividend payments have been growing each year.

CFO Brian Dykes, during the Q4 2024 earnings call hinted at “continued commitment” to the dividend, targeting a payout ratio around 50–60%.

Why Investors Like Dividends

Dividend stocks like UPS hold broad appeal for investors and retirees alike. Studies show that from 1980 to 2019, dividends fueled 75% of the S&P 500’s total returns, blending capital gains with steady income for long-term wealth.

With the S&P 500 down close to 5% over the past month and tariffs spooking investors, dividend stocks hold extra allure to defensive minded investors looking to project their portfolio. Per Ned Davis Research, dividend stocks outperformed non-payers by 60% during bear markets (1970–2020), acting as a cushion in rocky times.

That 5.5% yield from UPS, outpacing the current 3% U.S. inflation rate, delivers reliable cash flow, making it a haven for those seeking protection amid market turbulence.

What Wall Street Expects of UPS

Analysts are cautiously optimistic. The consensus price target from 31 Wall Street analysts now stands at $132.56, about 11.3% above the current $119.15 stock price, with a wide range of expectations—targets stretch from a high of $179 to a low of $82.

Ratings average a 2.06 out of 5, translating to a solid “Outperform” and growth projections are mixed—long-term growth is pegged at 3.70%, but industrial volatility and a projected 8.5% U.S. volume drop in 2025 due to reduced business with its largest customer temper expectations. Still, CEO Carol Tomé’s focus on a 12% U.S. operating margin by Q4 2026 signals upside for patient investors.

$10,000 Investment in UPS 10 Years Ago

To showcase the power of a dividend stock like UPS, let’s look at a $10,000 investment from March 2015 with dividends reinvested. That $10,000 bought 99 shares at $98 each, but after 10 years, reinvested dividends grew it to 139 shares. The annualized return was 5.14%, with dividend value exceeding $4,680—proof of compounding magic.

About the Author Joel South →

Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.

He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.